Mexico Raises Local Issuance

Mexico plans to boost by MXP3.75bn the amount of 7 classes of government bonds it will sell in Q2, the finance ministry says. The decision to sell more 3, 5 and 10- year fixed-rate bonds, as well as 1, 3, 6 and 12-month Cetes follows a recent agreement committing Mexico’s pension funds to invest new funds in Mexican securities only for the next 12 months. Hacienda will raise the quarterly amount of 10-year bonds, sold every 6 weeks, to MXP4.0bn from MXP1.5bn in Q1, 3-year bonds sold monthly to MXP5.0bn from 4.5bn and 5-year notes sold monthly to MXP1.75bn from MXP1.50bn. Mexico also plans to sell MXP8bn each in Q2 of its 1, 3 and 6-month Cetes every week, compared with MXP7bn in Q1, and MXP7.5bn in 1-year bonds every 4 weeks, up from MXP7.0bn. The ministry said it does not plan to repurchase bonds during Q2.